Monetary Policy Shocks: What Have We Learned and to What End?

Lawrence Christiano, Martin Eichenbaum and Charles Evans

No 6400, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper reviews recent research that grapples with the question: What happens after an exogenous shock to monetary policy? We argue that this question is interesting because it lies at the center of a particular approach to assessing the empirical plausibility of structural economic models that can be used to think about systematic changes in monetary policy institutions and rules. The literature has not yet converged on a particular set of assumptions for identifying the effects of an exogenous shock to monetary policy. Nevertheless, there is considerable agreement about the qualitative effects of a monetary policy shock in the sense that inference is robust across a large subset of the identification schemes that have been considered in the literature. We document the nature of this agreement as it pertains to key economic aggregates.

JEL-codes: E3 E4 (search for similar items in EconPapers)
Date: 1998-02
Note: EFG ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (586)

Published as "The Effects of Monetary Policy Shocks: Evidence from the Flow of Funds", Review of Economics and Statistics, Vol. 78, no. 1(February 1996): 16-34.
Published as Christiano, Lawrence J. & Eichenbaum, Martin & Evans, Charles L., 1999. "Monetary policy shocks: What have we learned and to what end?," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 2, pages 65-148 Elsevier.

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Chapter: Monetary policy shocks: What have we learned and to what end? (1999)
Working Paper: Monetary policy shocks: what have we learned and to what end? (1997)
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